IMPORT CONTROL

Gisborne Herald, Volume LXVI, Issue 20031, 1 September 1939, Page 7

IMPORT CONTROL

ENGLISH CRITICISM “THE HEIGHT OP POLLY” AN ALTERNATIVE METHOD “New Zealand apparently has failed to learn the lessons of history, or, if has’ she is'ignoring them with a blissful disregard of consequence,” states a bulletin issued by the Reciprocal Trade Federation of the United Kingdom, which' exists to strengthen trade relations between Great Britain and the Dominions and colonies. Thq bulletin says that New Zealand'S natural resources mark her out as a great primary producer, who must, of necessity, be dependent for her economic well-being upon the consuming power of countries overseas.

In 1938 no less than 84.17 per cent of New Zealand’s exports was shipped to the United Kingdom, and the excess of exports over imports from thp United Kingdom amounted to £22,468,000. #

“it is surqly the height of folly,” says thp writer, “to introduce any measures whose application can only serve to diminish the volume of trade between the two countries. Yet this has been dope. •■“.lmport restrictions,” he continues, “have been applied to meet a situation, which, insofar as the trading position was relevant, was brought about 'by a fall in exports due to a contraction of the production volume. Instead of imposing restrictions on imports, it should be the aim of the Government to build up exports; and that it can do by allowing the farmer to adjust his costs to his returns and by discouraging the further development of uneconomic secondary industries —in a word, -by allowing the country’s cost structure to lose some of its rigidity. Something also can be done toward creating more exportable wealth by transferring back to productive employment on the land many of the 22,426 men now engaged in non-productive public works.

The bulletin concludes by assorting that the Dominion’s import restrictions are weakening the friendly feeling of Britis|i jnanufacturers for New Zealand and tending to provoke retaliatory measures.